In-line with past reports, the phone is said to be a low-end device aimed at emerging markets, and thus appears meant to be an alternative to Nokia's Asha feature phones than mid-range or high-end Lumia models.
Both the WSJ and others have reported the phone won't support the apps/services that come with Google's version of Android (Play, Gmail, Maps, Now, etc.). Instead, Nokia/Microsoft services will be pre-installed, including a Nokia Android app store (its selection is bound to be much smaller than Google Play's).
Nokia's phone unit posted a 29% Y/Y sales drop in Q4, a decline that had much to do with plunging feature phone sales in the face of booming low-end Android phone sales in emerging markets. Though Windows Phone's price points have fallen considerably, they still don't match those of the cheapest Android devices.